patrick.net

bgmall--

No, that didn't help. I was just curious what your definition of bubble was--what % rise in real asset price over what time period.

clambo says

ONLY when banks started opening the floods of easy money to anyone breathing to buy houses did the value of houses rise anywhere above inflation.

on the otherhand we also saw consumers with unrealistic expectations of future appreciation.

Low rates and easy credit was in some way a response to the irrational thinking by many.

http://www.d__GPqOVNbE

During prior boom-bust, resulting in recession the FED also reduced rates as RE prices also decline. Both went down in tandem.

bgamall4 says

This may help you. The most powerful was the UK Big Bang of 1986, of Thatcherism, that set the table for the Blair and the massive bubble based on liar loans, which in England were called self certified loans. Isn't that nice?

You want to add Germany to that .. but did they NOT have Liar loans as they absorbed former East Germany in 1991. All it did was fuel speculation by West Germans.

A bubble is a bubble by any cause created. Of course there was easy money and plenty of speculation.. created by the Govt.

bgamall4 says

Any significant price rise over the rate of inflation in a short time. If you learned from Patrick you would know that. :)

Even as vague as that definition is, I would disagree with it. Bubbles are extraordinary events. Prices rise and fall routinely.

Obama works for Wall Street. He has 10 Goldman Sachs former employees on his White House Staff. It seems some people are fans on here and I can't believe it. Government provides new loan to buyer who is 50% upside down on million dollar home that should probably be worth $250K. Bad bank is going to lose $500K after they foreclose on bad loan. Thanks to gov they get paid in full when gov refinances the loan that is not refi-able in a free market. Bad bank walks away paid in full for bad loan and is no longer bankrupt thanks to stealing money from tax payers. THE END

bgamall4 says

No politician believes in price discovery. And the Republicans likely want another bubble even more than most Democrats, so they won't want price discovery either since you cannot have price discovery in a bubble.

Gary Anderson strategicdefaultbooks.com

Seriously? Who is this guy? Republicans and Dems are the same. Wall Street employees for the most part. Ron Paul is the only one who actually voted to let the big banks fail. The only real Republican we have.